Apple stock typically performs well ahead of a new iPhone release and investors should expect the same this year, Citi analyst Atif Malik wrote in a note to clients Thursday. Malik reiterated his “Buy” rating on the stock in a research note, and said, from this point, the shares could climb 36%.
Malik, who initiated coverage with a Buy rating around the time Apple hit a new all-time high at the end of June, has a $240 price target on the stock.
The analysts said he continues to recommend the shares heading into the hotly anticipated iPhone 15 launch. “Recent U.S. supply chain discussions point to strong replacement cycle potential in [the] iPhone 12 installed base,” he said, adding that there also was excitement over the 30% faster charging with the new USB-C port.
Citi opened a 90-day positive catalyst watch on the stock earlier this month ahead of the expected release of the iPhone 15 series in September. Malik noted that Apple stock has outperformed the S&P 500 during the period between June quarter earnings and the September iPhone announcement every year since 2016
MacDailyNews Take: In order to maximize short term profits, Apple stock must be beaten down as best as possible ahead of obvious catalysts. Gin up some “concerns,” concoct some “worries,” and shake out the uninformed, the intentionally misinformed, and the weakhearted. Create a nice entry point off the all-time highs. That’s what’s been happening since Apple reported earnings on August 3rd. Apple’s annual iPhone event is about a month away.
As we wrote the day after Apple reported Q323 earnings, “Take the irrational discounts when they come!”
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It’s good entry points at $174.10.
A bit lower then 170 would be amazing. Bought some at 142 a couple of month ago. 23% markup in a bit less than a year. Can go wrong. Buy AAPL. Still undervalued.